Recreational property values in most areas of Canada are predicted to decline in 2023, with one exception, according to a new Royal LePage report, compiled by results of a survey of Royal LePage realtors across the country..Overall, Royal LePage expects single-family home values to drop .5%, with similar properties in Quebec and Ontario taking the biggest hits, falling 8% and 5% respectively..Homes in Atlantic Canada and the prairie provinces of Manitoba and Saskatchewan are predicted to drop 3%, with values in BC seeing a 2% decline..It’s a big reversal from recreational property values over the last two years, says Royal LePage. The aggregate price for a single-family home in 2022 increased 11.7% on the heels of a 26.6% increase in 2021..“After two years of relentless year-round competition, Canada’s recreational property markets have slowed and returned to traditional seasonal sales patterns,” said Phil Soper, president and chief executive of Royal LePage..“While interest rate hikes have less of an impact on the recreational market than homes in urban settings because families typically put more money down and borrow less, general consumer inflation combined with a severe lack of inventory has dampened sales activity.” .“Buyers who are active in today’s market appear willing to wait for the right property, a sharp contrast to what we experienced during the pandemic.”.The exception is Alberta, more specifically, the town of Canmore. .Province wide, single-family recreational properties are predicted to rise a modest .5% in 2023 to $1,171,328, after a 13.3% increase to $1,165,500 in 2022. .The aggregate price of a single-family waterfront property decreased 5% to $641,900 in 2022, with the aggregate price of a condominium increasing 17.7% to $646,000..Take Canmore out of the equation and those numbers change dramatically..In the mountain town, a 45-minute drive west of Calgary city limits, the aggregate single-family home came in at $1,316,500 in 2021, then increased 16.1% to $1,527,800 in 2022. A standard condominium, valued at $618,500 in 2021, increased 20.8% to $747,000..Demand for recreational properties in Canmore is stable, says Brad Hawker, associate broker, Royal LePage Solutions..“Buyer demand for recreational properties in Canmore continues to be driven by retirees and Albertans living in the surrounding cities, as well as residents from Ontario and Quebec,” says Hawker. “As Canmore attracts many cash buyers, higher interest rates have had little impact on this market, a factor that has kept prices stable.” .“Low supply continues to be a challenge, an issue that has been underscored by the lack of new construction projects. This has caused many buyer hopefuls to sit on the sidelines, waiting for their ideal property to become available.”.The Royal LePage survey of realtors found 65% said the trend of homeowners moving back to urban or suburban communities after relocating to their region full-time during the pandemic was not common, another factor contributing to the supply shortage. .“We are experiencing a lack of turnover in the Wabamun Lake and Lac Ste. Anne markets. Coveted recreational homes, especially those on the water, are more likely to be passed down through the generations, a trend that is exacerbating the region’s low level of supply,” says Tom Shearer, broker, Royal LePage Noralta Real Estate. “Those shopping for a recreational home are often locals from nearby cities who already have a personal connection to the area and are looking for a retreat to enjoy with family on the weekends and in the summer months.”.“Unlike a primary residence, most buyers shopping for a vacation home can afford to wait for the perfect property to present itself.”
